SEBI has gone beyond SC order, says Sahara Boss Roy

The row between Sahara Group and market regulator Securities and Exchange Board of India (SEBI) is likely to get even nastier as Group Chief Subrata Roy is calling SEBI’s action against the group an act of personal vengeance.

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SEBI has gone beyond SC order, says Sahara Boss Roy

The row between Sahara Group and market regulator Securities and Exchange Board of India (SEBI) is likely to get even nastier as Group Chief Subrata Roy is calling SEBI’s action against the group an act of personal vengeance.

The row between Sahara Group and market regulator Securities and Exchange Board of India (SEBI) is likely to get even nastier as Group Chief Subrata Roy is calling market regulator's action against the group an act of personal vengeance.

Playing a victim, Subrata Roy minced no words in criticizing the market regulator in an exclusive interview to CNBC-TV18 where he claimed that SEBI was making up stories without checking facts. He even went on to say that SEBI had gone beyond Supreme Court's order and was breaking all rules and law.

The market regulator had today called Roy and three other group directors to discuss sale of group's properties and recovery of unpaid dues. SEBI and Sahara Group has been in a tussle after the Supreme Court order directed the market regulator to attach properties of Sahara Group in connection with the refund case involving an estimated Rs 24,000 crore payment to over 30 million small investors.

In February, SEBI had ordered a freeze on the assets and bank accounts of the two Sahara group companies namely Sahara India Real Estate Corporation (SIREC) and Sahara Housing Investment Corporation (SHIC).

Roy said that in the meeting held today, SEBI demanded details of his personal properties. Surprisingly, Roy who is known for living a lavish life claimed to have no immovable properties and said that he had cash of around Rs 2 crore in bank accounts and gems and jewellery worth Rs 1 crore only.

"Company provides us all facilities...personally I am not a very rich man, the company is very rich," he said.

Roy said that many other government investing agencies were activated against the group and hinted that there were political motives behind actions of Reserve Bank of India and SEBI. He promised to come out with the truth and proofs of vengeance against the group at the right time.

On various occasions earlier, including through newspaper advertisements, Sahara Group has accused SEBI of not providing an opportunity to meet the group chairman Roy for presenting their point of view. Sahara claims that it has already repaid most of the investors directly and its total outstanding refund liability was less than Rs 5,120 crore, which it has given to SEBI.

Now, the Securities Appellate Tribunal (SAT) is scheduled to hear Subarta Roy's appeal against a previous SEBI order for attachment of its bank accounts, assets and investments on April 13.